Simple Steps Can Save Consumers Money on Auto and Homeowners Insurance, According to Weiss Ratings; Free Quote Comparison Worksheet Available Online

Business Wire, Dec 3, 2003

Business Editors

JUPITER, Fla.--(BUSINESS WIRE)--Dec. 3, 2003

The most effective way for consumers to save money on auto insurance is to have a safe driving record, while the best way to maintain reasonable homeowners insurance is to avoid filing small claims that could be paid outright, according to Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.

"Essentially, premium rates reflect consumers' claims history," commented Melissa Gannon, vice president of Weiss Ratings, Inc. "Although it doesn't ensure that rates won't go up, avoiding or at least minimizing the number of claims filed, especially smaller ones that could be paid for out of pocket, is the single most important way for consumers to keep their premiums from rising."

Consumers in the market for either auto or homeowners insurance should consider the following money-saving tips from Weiss Ratings:

-- Increase your deductible - Ask insurers for quotes using

different deductible levels to identify potential savings.

-- Compare prices regularly - Always shop your policy around.

Even if you do not change insurance companies, you will know

that your rate is competitive.

-- Use the same company for homeowners and auto insurance - Most

insurers give you a discount for purchasing more than one

policy, although it's important to compare prices to be sure

that you are getting the best rate.

-- Take advantage of group discounts - If you are a member of a

national association like AAA, AARP or a professional

association, ask about group discounts. Be sure to verify that

the discount offered is less expensive than other

alternatives.

-- Use your clean credit report to your advantage - Depending

upon state laws, insurers may be able to use your credit

history to grant or deny coverage or as a factor in setting

rates. Checking your credit report annually for erroneous

information could save you money.

-- Pay your premium in advance - Many insurers offer discounts if

premiums are paid annually or semiannually, rather than

monthly.

For consumers shopping for auto insurance, there are some additional ways to help reduce premiums. Weiss Ratings recommends the following advice:

-- Take a driver safety course - Even if you have not been

ticketed, you can still take a safety course and save money.

-- Forego comprehensive and/or collision coverage - If the value

of your vehicle does not justify the premiums, you might want

to drop this type of coverage.

-- Choose a vehicle that is less expensive to insure - Generally,

it is less expensive to insure sedans and minivans than it is

to insure sports cars and SUVs, which are more expensive to

repair.

-- Ask about discounts specifically for young drivers - If you

have young drivers in the family, inquire about discounts for

taking a driver's education course or for getting good grades.

Likewise, for those specifically in the market for homeowners insurance, Weiss suggests other tips that can help consumers secure the best rates:

-- Reduce your risk of theft - Install dead bolts and/or a

burglar alarm.

-- Reduce your risk of fire - Equip your home with smoke

detectors and/or a sprinkler system.

To help consumers understand the complexities of auto and homeowners insurance options and coverages, Weiss Ratings offers The Consumer Guide to Auto Insurance and The Consumer Guide to Homeowners Insurance. In addition to money-saving tips, the easy-to-use how-to guides ($39 each) help consumers understand the language of auto and homeowners insurance, the types of coverage available, and state and lender insurance requirements. The reports also address other important topics related to the purchase of auto or homeowners insurance, including:

-- Items not covered by auto or homeowners policies;

-- How premiums are determined; and

-- How to shop for an auto or homeowners policy.

Each report also offers an easy-to-use "Quote Comparison Worksheet," which is designed to help consumers compare policy features and identify the lowest rates. The "Quote Comparison Worksheet" is available free to consumers at www.WeissRatings.com. Weiss Ratings' consumer guides to auto and homeowners insurance help customers choose strong, reputable insurers by listing auto and homeowners insurers receiving Weiss' highest safety ratings (B+ or higher).

Weiss issues safety ratings on more than 15,000 financial institutions, including insurance companies, banks, and brokerage firms. Weiss also rates the risk-adjusted performance of more than 12,000 mutual funds and more than 8,000 stocks. Weiss Ratings is the only major rating agency that receives no direct or indirect compensation from the companies it rates for issuing its ratings. Revenues are derived strictly from sales of its products to consumers, institutions, businesses, libraries, and governmental agencies.

Note to Editors: Consumers can obtain a free copy of Weiss Ratings' "Quote Comparison Worksheet" at www.WeissRatings.com.